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Navigate Global Payments – Markets Today 2nd August 2022

 

MARKET WRAP – 2nd August 2022

 

  • Stocks started the month in a subdued manner with Pelosi’s Taiwan visit stoking geopolitical angst while the US July ISM Manufacturing was mixed.

 

  • The Dollar was weaker to start the week and printed a low of 105.230 as reports suggesting US House Speaker Pelosi is to go ahead with her visit to Taiwan rattled broad risk sentiment, with the Dollar feeling the effect.

 

  • US Manufacturing PMI for July was revised down to 52.2 from an initial reading of 52.3 while Construction Spending for June declined by 1.1% against expectations of a 0.2% gain.

 

  • Of more importance, US ISM Manufacturing for July printed at 52.8, down from 53.0 though better than expectations of 52.0. Key sub-indices were mixed however with a significant drop in Prices Paid, a modest fall  in New Orders while Employment rose more than expected.

 

  • Note also, the maritime administration in Qinglan, South China’s Hainan, issued a warning and prohibited entry to an area in the South China Sea due to military exercises from Tuesday to Saturday, according to Global Times.

 

  • On this, the RBA is expected to hike the Cash Rate Target by 50bps to 1.85% at its meeting on Tuesday with OIS pricing in around an 84% chance for the RBA to deliver a third consecutive 50bps rate increase, which would be the fourth hike in as many meetings since it began lifting rates

 

  • Nonetheless, AUD/USD traded in tight parameters, highlighted by the ranges of 0.6969-0.7046  . Moreover, ahead of the RBA meeting, technicians note the risk of AUD/USD moving lower after the RBA unless the statement leans very hawkish, and techs continue if the RBA is more hawkish than expected then the cross may test the 0.7200/50 area.

 

 


TODAY’S KEY RISK EVENTS

• AU – RBA Cash Rate Target

• AU – Jun Building Approvals m/m

• AU – Home Loan Value m/m

• CA – Jul Manufacturing PMI

• US – Fed’s Evans & Bullard Speak

 

CURRENCY/INDICIES RANGES

Currency Pair Low High
AUD/USD 0.6969 0.7048
EUR/USD 1.0195 1.0275
GBP/USD 1.2165 1.22915
USD/JPY 131.6 133.56
NZD/USD 0.6278 0.6352
USD/CAD 1.2767 1.2855
USD/CNH 6.731 6.7905
AUD/JPY 92.26 93.3
AUD/NZD 1.1074 1.1121
DXY 105.241 106.025

 

Equity Index Daily % Change Closing Level
ASX 0.7% 6993
SHANGHAI COMP 0.2% 3260
NIKKEI 0.7% 27993
FTSE -0.1% 7413
DAX 0.0% 13480
CAC -0.2% 6437
DOW JONES -0.1% 32798
S&P 500 -0.3% 4119
NASDAQ -0.2% 12369
VIX 7.1% 22.84
Equity Index Daily % Change Closing Level
ASX 0.7% 6993
SHANGHAI COMP 0.2% 3260
NIKKEI 0.7% 27993
FTSE -0.1% 7413
DAX 0.0% 13480
CAC -0.2% 6437
DOW JONES -0.1% 32798
S&P 500 -0.3% 4119
NASDAQ -0.2% 12369
VIX 7.1% 22.84
Commodity Daily % Change Closing Level
CRUDE OIL -4.8% 93.9
ICE NAT GAS -0.8% 349.2
GOLD -0.1% 1772.1
SILVER -0.2% 20.4

Source Bloomberg

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Disclaimer: This material is provided by Navigate Global Payments (Navigate) ACN 615 699 888, AFSL 502711. The material contains general commentary only and does not constitute investment or any other advice. Certain types of transactions, like futures, options and high yield securities can be risky, and not suitable for all investors. This information has been prepared without considering your objectives, financial situation or needs. Please seek your own independent legal or financial advice before proceeding with any investment decision. The information is believed to be accurate at the time of compilation and is provided in good faith. Navigate does not warrant the accuracy or completeness of any information contributed by a third party. The information is subject to change without notice and Navigate is under no obligation to update the information. The information contained in this material are opinions of the author at the time of writing and does not constitute an offer, recommendation to act, a solicitation of an offer, or an inducement to subscribe for, purchase or sell any financial instrument or to enter a legally binding contract. This information, including any assumptions and conclusions is not intended to be a comprehensive statement of relevant practise or law that is often complex and can change. Past performance is not a reliable indicator of future performance. Any forecasts given in this material are predictive in character.

 

 

 

 

 

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Disclaimer:This material is provided by Navigate Global Payments (Navigate) ACN 615 699 888, AFSL 502711.  The material contains general commentary only and does not constitute investment or any other advice.  Certain types of transactions, like futures, options and high yield securities can be risky, and not suitable for all investors.  This information has been prepared without considering your objectives, financial situation or needs.  Please seek your own independent legal or financial advice before proceeding with any investment decision. The information is believed to be accurate at the time of compilation and is provided in good faith.  Navigate does not warrant the accuracy or completeness of any information contributed by a third party. The information is subject to change without notice and Navigate is under no obligation to update the information. The information contained in this material are opinions of the author at the time of writing and does not constitute an offer, recommendation to act, a solicitation of an offer, or an inducement to subscribe for, purchase or sell any financial instrument or to enter a legally binding contract.  This information, including any assumptions and conclusions is not intended to be a comprehensive statement of relevant practise or law that is often complex and can change.  Past performance is not a reliable indicator of future performance. Any forecasts given in this material are predictive in character.

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